Updated October 2026, 2026 tax changes: from 1 July 2027, negative gearing for residential property is generally limited to eligible new builds (later buyers of that dwelling can't access it), and the 50% capital gains tax discount for individuals, trusts and partnerships is replaced with cost base indexation and a 30% minimum tax on gains. Properties held at 7:30pm (AEST) on 12 May 2026 keep their existing negative gearing treatment, and the changes to capital gains tax apply only to gains that accrue after 1 July 2027; investors in new builds can choose the 50% discount or the new rules. Both changes are now law; see the ATO. This is general information only; speak to a registered tax agent about your situation.
As the End of the Financial Year (EOFY) approaches, it helps to know what to include in your tax return. We’ve put together a checklist of items to consider.
We know that declaring taxes can be overwhelming and confusing. Investment property calculators can help you estimate figures for an investment property at the end of the financial year. To make your life a little easier, we’ve created a guide to help you.
People often fail to realise that their income does not always depend on their employer or regular income. Some other sources of income that are sometimes overlooked are:
- Lump sums
- Termination payments
- Bank interest earned
- Dividends
- Employee share schemes
- Rental income
- Capital gains
- Cryptocurrency gains
So why is it important to factor in all forms of income? It is important to declare all income streams as the ATO will ask you to pay your outstanding tax liabilities plus interest on late payments and any other penalties you may have. Using an income gross up calculator provides clarity on your overall income position.
Now that we’ve covered which streams of income to declare, let’s move on to tax deductions.
Deductions can be one of the most confusing and debated areas of tax returns. Deductions can be expenses you’ve paid, though are not being reimbursed through your income. These might include:
- Home office expenses, such as running costs and stationery
- Self-education and professional development
- Tools, equipment, uniforms, protective clothing
- Work-related travel costs, such as public transport and car expenses (not your normal trip between home and work)
- Donations of $2 or more to deductible gift recipients
So does owning a property impact your tax return?
Owning an investment property may allow you to claim several tax deductions, which include:
- Repairs and maintenance fees
- Interest on your investment loan, and borrowing costs such as establishment fees and Lender’s Mortgage Insurance (LMI), which are generally deducted over five years (or the loan term if shorter)
- Insurance for the rental property
- Strata fees
- Negative Gearing: If your property is negatively geared, you can offset your loss against other taxable income, such as your salary, to reduce your overall taxable income for that year. From 1 July 2027, this is limited to properties held at 7:30pm (AEST) on 12 May 2026 and eligible new builds.
Your property is positively geared if you earned more income than you spent on expenses in the financial year. In this case, you may be subject to tax on your property income. But if you spent more on fees than you received in revenue, your property could be negatively geared, which can reduce your taxable income (subject to the 1 July 2027 limits above).
Some property investors accept short-term losses on a negatively geared property and rely on capital growth, which may not eventuate, to make up for those losses over a longer period. From 1 July 2027 negative gearing is limited to properties held at 7:30pm (AEST) on 12 May 2026 and eligible new builds.
An income tax calculator can help you estimate your position before EOFY.
For advice on your own tax return, speak to a registered tax agent. To talk through your property strategy, contact Liviti.
